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An Income Tax notice is an official communication from the Income Tax Department requesting clarification, information, or compliance regarding an individual’s, firm’s, or company’s tax affairs. Notices may be issued for reasons such as non-filing of returns, mismatch of income or TDS, tax demand, or scrutiny of transactions. Responding accurately and timely to such notices is crucial to avoid penalties, interest, or legal complications. The process involves carefully reviewing the notice, understanding the nature of the query, gathering supporting documents such as income statements, bank statements, Form 16/16A, TDS certificates, or audit reports, and preparing a formal reply. The response must clearly address the queries raised, provide explanations or corrections, and be submitted electronically via the Income Tax e-filing portal or physically if required. Professional guidance is recommended for analyzing notices, drafting precise responses, and ensuring all supporting evidence is correctly presented. Timely and proper reply helps in resolving disputes, avoiding unnecessary penalties, and maintaining compliance with the Income Tax Act, 1961.